Reference no: EM132521076
Question - Omar Products Inc. reported a profit in 2020 and declared a preferred share dividend. The amounts follow:
Profit for the year $ 1,059,000
Preferred share dividends declared $62,000
The following changes in common shares outstanding occurrred during the year.
1-Jan The number of common shares outstanding on Jan 1 was 632000
1-Mar Declared and issued a 30% stock dividend
1-Aug Sold common shares
Number of common shares sold 21000
1-Nov Sold common shares
Number of common shares sold 42000
Required -
1. Calculate the weighted-average number of common shares outstanding during the year.
2. Calculate the earnings per share. Round calculations to two decimal places.